Coinbase’s Chief Legal Officer, Paul Grewal, expressed his frustration with the SEC’s fake announcement by stating, “Biting my tongue so hard it’s bleeding.” Grewal also threw his weight behind Coinbase’s CFO, Philip Martin, who extended a helping hand to the SEC, offering security protocol expertise gained from the crypto exchange’s experience with social media. Martin, also a veteran, expressed a willingness to assist the regulating body, suggesting, “If you’d like any suggestions, feel free to reach out.”
In response to the incident, the SEC released a statement refuting the false announcement about Bitcoin exchange-traded funds on social media, emphasizing its inaccuracy. The aftermath of the misleading post witnessed a brief spike in Bitcoin’s price, followed by a swift decline below $46,000. A spokesperson from the SEC later informed CNBC that unauthorized access to the regulator’s X account occurred “by an unknown party” just after 4 p.m. ET. The SEC pledged to collaborate with law enforcement and government partners to investigate unauthorized access and any related misconduct.
Crypto enthusiasts didn’t hold back, criticizing SEC Chair Gary Gensler for the apparent mishap. CEO of Jan3, Samson Mow, suggested that it would have been better for Gensler to go with the Bitcoin ETF approval announcement, emphasizing that the damage control efforts undermine the SEC’s credibility. Renowned whistleblower and cybersecurity expert Edward Snowden bluntly advised Gensler to “get your shit together.”
Coinbase & SEC Meet
As the SEC is anticipated to decide on Bitcoin ETFs this week after years of opposition, over a dozen asset managers have submitted applications to create such funds. The crypto community remains engaged in debates over the January 10th deadline for the Bitcoin spot ETF.
Meanwhile, Coinbase is set to meet with the SEC on January 17, with prominent legal expert MetaLawMan highlighting the meeting as a potentially significant legal development for the crypto industry. MetaLawMan expressed confidence in the possibility of Judge Failla making a decisive move, hinting at the potential for a case dismissal.